Legal & Tax · 10 min

Spain's Proposed 100% Property Surcharge on Non-EU Buyers: What It Means and Where It Stands

10 June 2026 · Hansson & Hertzell

Spain's government proposed a 100% surcharge on property purchases by non-EU, non-resident buyers in early 2025. The measure has stalled in Congress — but it has reshaped the conversation for British and international buyers. Here's what the proposal actually says, its current status, and what buyers should do now.

In January 2025, Spanish Prime Minister Pedro Sánchez announced a proposal to impose a surcharge of up to 100% of property value on purchases by non-EU, non-resident buyers. The stated aim was to address housing affordability concerns — primarily in Barcelona and the Canary Islands — by reducing speculative foreign demand in the most pressured markets.

The headline figure — 100% — caused significant alarm among international buyers. It's worth being precise about what was and wasn't proposed.

What the proposal actually said:

The government announced an intent to study and introduce a surcharge, not a finalised law. The mechanism envisaged was an additional tax — structured similarly to the existing property transfer tax (ITP) — applied specifically to buyers who are (a) non-EU nationals and (b) not resident in Spain. It would not apply to:

• EU citizens (regardless of where they live)
• Non-EU nationals who are Spanish residents (hold a valid residency permit)
• Buyers of new-build property from developers (which is subject to IVA, not ITP)

Who it would affect if passed:

The primary target was British buyers post-Brexit, alongside buyers from outside the EU/EEA who do not hold Spanish residency. In practice, this means buyers who purchase as a second home or investment without first obtaining a residency permit.

Current Status: Stalled in Congress (as of June 2026)

The proposal has not been enacted as law. As of June 2026, the measure has failed to pass through the Spanish Congress (Congreso de los Diputados). Spain's current government operates as a minority administration and requires coalition support for legislation — that support has not materialised for this specific measure.

The reasons for the stall are both political and practical:

• Constitutional concerns: Legal experts raised questions about whether a blanket surcharge on purchases by nationality (even non-EU nationality) conflicts with EU free movement principles and existing bilateral investment treaties.
• Industry opposition: Spain's real estate developers, real estate associations (API, COAPI), and regional governments — particularly the Valencian Community, Murcia, and the Canary Islands — lobbied against the measure, citing the economic impact on construction employment and regional economies.
• Coalition fragmentation: The governing coalition's left flank supported the measure; centrist coalition partners including Junts have not given it priority.

The current position is that the proposal remains on the government's legislative agenda but has no confirmed timetable for re-introduction or a scheduled parliamentary vote.

What This Means for British Buyers

British nationals are non-EU since Brexit — so this proposal, if enacted, would apply directly to British buyers purchasing without Spanish residency.

Three points are important to understand:

1. Nothing has changed legally as of today.

There is no 100% surcharge in force. British buyers can purchase property in Spain under the same tax regime that has applied since 2021: 10% IVA (new build) or 8–10% ITP (resale, rates vary by region) plus stamp duty and notarial fees. No additional surcharge exists.

2. The residency route exempts you entirely.

If the measure were eventually enacted, obtaining Spanish residency before purchasing would remove buyers from its scope. British nationals can obtain residency via several routes: the non-lucrative visa (passive income/savings), the golden visa (property investment of €500,000+), or the digital nomad visa. Residency applications can be pursued independently of a property purchase.

3. The Valencian Community specifically has signalled opposition.

The Costa Blanca falls under the Valencian Community's jurisdiction. The regional government (Generalitat Valenciana) has publicly opposed the national proposal, arguing it would damage the region's economy. Even if national legislation were eventually passed, regional variation in application is possible.

What Swedish Buyers Should Know

Swedish nationals are EU citizens and would be entirely unaffected by this measure — both the proposed version and any likely revision. EU free movement rights protect Swedish buyers from any differential tax treatment based on nationality within the EU.

This is a meaningful distinction: the Swedish buyer market on the Costa Blanca and Costa del Sol faces no legislative risk from this proposal regardless of how it evolves.

For Swedish buyers, the relevant tax considerations remain unchanged:

• IVA (10%) on new builds
• ITP (8% in Valencian Community, 7% in Murcia, 7–10% in Andalucia) on resale
• Standard notarial and registry costs (~1.5–2%)
• No wealth tax liability below the threshold that applies in each region

Should This Change Your Buying Plans?

For British buyers, the honest answer is: not urgently, but it's worth factoring into timing decisions.

The proposal has stalled and has no confirmed path to becoming law. Even if it were reintroduced and passed, the implementation timeline would give buyers a window to react — either by completing a purchase beforehand or by obtaining residency. Spanish property law changes take effect prospectively, not retroactively.

That said, the proposal is a signal that Spain's political environment around foreign property ownership is more complex than it was five years ago. It's a reasonable argument for:

• Moving faster on a purchase you're already committed to, rather than extending a long 'watching' period
• Exploring the residency route if you plan to spend significant time in Spain — this has tax and lifestyle benefits beyond the surcharge question
• Focusing on the Valencian Community and Costa Blanca, where regional government opposition provides an additional layer of protection

The buyers most exposed to risk are those planning to purchase purely as non-resident investors with no intention of seeking residency. For lifestyle buyers and those considering relocation, the residency route is both accessible and sensible regardless of the tax question.

The Practical Steps

If you're a British buyer actively considering a Costa Blanca purchase in 2026:

1. Get a NIE number. The Número de Identificación de Extranjero is required for any Spanish property transaction. It can be obtained from the Spanish consulate in the UK or from the Extranjería office in Spain and takes 2–8 weeks. This is your first step regardless of residency plans.

2. Take Spanish tax advice now. A cross-border tax specialist can model the implications of different scenarios — purchase with and without residency, rental income treatment, inheritance tax implications — and help you structure the acquisition correctly.

3. Monitor legislative progress. The proposal could be reintroduced with a new coalition agreement or after a general election. Setting a monitoring alert on BOE (Boletín Oficial del Estado) for any ITP or property surcharge legislation is the practical way to track it.

4. Assess the residency option. For buyers spending 2+ months a year in Spain, formal residency is increasingly worth considering for its own merits — healthcare access, banking relationships, and avoidance of 90-day Schengen limits — quite apart from the tax question.